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Mr Speaker, Sir,

Malaysians are facing changes in politics and economy in the country. Although the Government is trying to play down these changes or transition through various means including the media, the people are worried about what is going to happen within the country in this transitional period. What happened at Kampung Medan, Old Klang Road, Petaling Jaya South, Selangor, on 8 March, 2001, was the dark moment when at least six people died and many injured. Why did the fight take place?

We do not want Kampung Medan incident to occur or to be repeated. We offer our condolences to the families of the victims. We take a moderate attitude. We regret that some leaders of Barisan Nasional pointed their fingers at Barisan Alternatif. In fact, if the Government had acted early, quickly and professionally, the incident could have been avoided. The Government must investigate the incident and present a white paper to the House as soon as possible. Here, I would like to stress that although the Government promised to present a white paper on the Sauk incident (armed heist by Alma'unah in Grik), hitherto it has not done so. There are still court cases on the tragedy and the Alma'unah. When will the Government fulfil its promise?

One sickly sheep infects a whole flock. Certain bad persons in a community triggered off the incident. We have to find the root causes and take appropriate action. It has been said that in the Kampung Medan incident, six people were killed, at least 40 injured and hitherto 75 have been charged in courts. (When these concern two races such as Malays and Indians, we have to deal with the incident even more fairly and expeditiously.)

Between 4 to 8 March, 2001, news spread that there were parang, cleaver, attacks during a wedding dinner, funeral procession or wake
and on a lorry driver (and his wife). We were told that when the police were informed, they did not act immediately. Some suspect the professionalism of the police. Then, it was reported that about 800 police were patrolling the troubled area.

ROYAL COMMISSION ON UNITY

Besides the white paper on Kampung Medan, we have to study the conditions in the whole country, including all squatter areas, long houses, low-cost flats, poor villages, private and public institutes of higher learning. For example, the long houses in Jinjang North, Kuala Lumpur with about 2,000 units completed nearly 10 years. There are drug traffickers and addicts and criminals in the area. They affect peace and security in and around the area. Although there is a proposed project to develop the area, social problems including crimes abound. The police have not been able to tackle them effectively.

There are many factors including the lack of police personnel and a less firm attitude that result in the police unable to control the situation early. Hence, there is a need to take in more recruits and to train them well so that the police are truly professional and disciplined.

The Honourable Prime Minister (Dato' Seri Dr Mahathir Mohamad) is occupied with politicking. At one time he calls for bangsa Malaysia, the Malaysian race, giving people of all races hope because they believe that he wants to get rid of racialism. But, before and after the 1999 general elections, he has been playing racial politics. For instance, before the elections, his Cabinet supported Suqiu, a Chinese Elections Appeal Committee. After the elections, he branded them Communist and Alma'unah, an extremist sect. Then, he rekindles the flame of Malay unity. Furthermore, (the component parties of the Barisan Nasional) UMNO, MCA and MIC (all monoethnic parties) continue to play racial politics in the true sense of the words. These are against bangsa Malaysia, multiracialism. Although Barisan Nasional insists that Malay unity is good for the country and would not affect other races, many people do not agree. Views vary from person to person.

I propose that we set up a royal commission to inquire into the position of national unity, the relevance of the Ministry of National Unity and Social Development, elements that affect or encourage national unity including monoethnic parties. Stop several gaps with one bush.

ECONOMIC POSITION

The Government repeatedly says that the economy is expected to continue to grow rapidly. There are signs that the economy is not as strong: the building, retailed trade, palm oil and rubber sectors are weak. Although economic growth is expected to be 7% this year, we fear that it may be 4 or 5 %. We hope this fear is unfounded.

The United States of America, USA, the largest economy in the world, is slowing down and Japan, the second largest economy in the world, has been in the doldrums for one decade. They have an influence on the world economy. The Government crows about its ability to manage the Malaysian economy, but we find that it has weaknesses like the unsatisfactory reform in corporate management, as seen in the management of Malaysian Airlines System, MAS, and initial public offering, IPO, of Time dotCom. In the Government's practice today, there are reasons to believe that the offering of bribes is accepted as normal practice.

THE LACK OF EXPERTS AND MONEY IN PUBLIC WORKS DEPARTMENT, PWD.

There are indications that the Government intends to spend more money for public projects including the revival of Bakun Hydroelectric project that is estimated to cost RM9 billion. It is hoped that these projects will provide a stimulus to the economy that is slowing down. With tongue in cheek the Government says that the economy has recovered from the 1997 economic crisis. (We did mention about the slowdown of the US economy in 1997.) We shall discuss public projects in greater details during the debate on the Eighth Malaysia Plan.
What is important is that PWD has been entrusted to implement projects or to supervise privatized projects that have been decided by other agencies such as the Economic Planning Unit, EPU. But, PWD lacks fund and personnel including experts. I propose that the government review the financial and staffing situation of PWD so that it will function effectively and with discipline.

MUCH OF A MUCHNESS

Two things that are in some ways similar are the Government purchase of MAS shares and the involvement of statutory fund agencies with IPO of Time dotCom that was previously known as Time Telecommunications Holdings Berhad, a telecommunications subsidiary of Time Engineering Berhad. There is much of a muchness. It is difficult for the Government to justify. Sometimes, the excuses are lame.

Yesterday, the Finance Minister's reply on the purchase of MAS shares by the Government can be accepted partly but not wholly. As a national carrier, we hope that MAS will succeed. It has the potential; it should do well internationally. As the time has been restricted, I am going to comment only on the rationale or lack of it in the Government buying of 29.09% shares from Tan Sri Tajudin Ramli at RM 8 per share, totaling RM 1.792 billion while the market price at that time was RM 3.68 per share. Although in 1994, Tan Sri Tajudin paid RM 8.50 per share, he still gets RM 8 per share whatever the market price.

In investment or business, there are risks. Tan Sri Tajudin wins a price or a type of insurance. No wonder, we have been told that he told a foreign news agency that he was lucky to get RM 8 per share, from which he was able to pay RM 1 billion debt by his company Naluri Berhad.

We suggest that a special report on the position of MAS and the government purchase of its shares be tabled. As a member of the Public Accounts Committee, I am bringing up the matter for discussion in the committee.

TIME DOTCOM

Renong, the flagship of UMNO and Tan Sri Halim Saad, has the maze of facts and figures, which is difficult to untangle. The combinations and permutations of the conglomerate and its subsidiaries, tied up with business politics and patronage, are complex. Time dotCom is one of the subsidiaries.

Sdr Lim Kit Siang, DAP National Chairman and former Tanjung MP has spoken up at length on Time dotCom IPO and the involvement of statutory finance agencies.

We are told that Tan Sri Halim Saad owes RM 25 billion. We would like the Government to investigate this matter. Is it true that in this IPO, he obtains RM 900 million? Will there be many more IPOs of Renong subsidiaries?

On 12 March, 2001, Time dotCom had IPO with 571 million shares at RM 3.30 per share. Only 25% of these shares were subscribed. Then, statutory agencies such as Employees' Provident Fund, EPF, Pension Trust Fund, PTF and Danaharta, National Assets Management Limited, took up the unsubscribed shares. Within one week, the share dropped to RM 2.09 on 21.3.2001 and RM 2.20 on 22.3.2001. Until now, EPF, PTF and Danaharta lose over RM 500 million.

In 1996, EPF gave a short-term loan of RM 500 milion to Time Telecommunications Berhad, that is Time dotCom, at 9% interest. EPF has agreed to accept repayment in cash and IPO shares at RM 3.30 per share. Similarlly, Danaharta has accepted the terms.

According to The finance Minister, PTF was a subunderwriter of Time dotCom because it believes the IPO would be oversubscribed. But, it was not to be. Kit Siang has described PTF as an undertaker.

EPF has bought 81.6 million shares (3.22%) at RM269.28 million, PTF 273.86 million shares (10.82%) at RM903.74 million and Danaharta 80.05 million (3.16%) at RM264.16 million.

WATCHDOG PANEL

Before the 1997 economic crisis, Renong (and Time dotCom) was regarded as a powerful giant, buttressed by the dominant ruling party.

EPF has 9.7 million members and total assets of RM 181 billion. PTF looks after hundreds of thousands of civil servants ( majority of 850,000 civil servants) and Danaharta handles non-performing loans. That is why Malaysians question the involvement of these agencies in the bailing out of Time dotCom. Truly, these agencies must show accountability and transparency.

A Watchdog Committee and EPF contributors' Association must be set up to protect the rights and interests of 9.7 million members. Similar watchdog committee should also be formed to look after the interests of hundreds of thousands of civil servants.

I hope that members of parliament will support our efforts to expose the Time dotCom scandal. We need to scrutinize EPF, PTF and Danaharta.

Tan Sri Halim Ali, the new chairman of EPF, has said that EPF has 78.7 millions of Time dotCom shares or 3.11%. Then, it acquires 2.85 million from restricted offer, making up the total of 81.6 million or 3.22%.

He believes that TimedotCom is the main player in the telecommunications industry in Malaysia and that making this strategic investment is based on sound financial considerations.

EPF should review what are considered sound financial considerations and the taking of 2.85 million shares from restricted offer.

(The duty of EPF, PTF and Danaharta is to look after public interest, but not to become underwriters of IPO.)

In the age of globalization, Malaysians must be equipped with modern and traditional methods to face the challenges of k-economy and e-commerce. Meanwhile, we have to tackle the financial slowdown. We hope the Government will help the people by eradicating weaknesses in its administration. (It cannot keep on giving largesse to a few at the expense of the majority.)

After lying on a bed of roses, how can these people go through hell and high water in the open world?

Dr Tan Seng Giaw